Libya is an unusual water market for foreign investors, playing host to water projects at opposite ends of the spectrum, from small, local desalination plants, to the so-called eighth wonder of the world – the Great Man-made River scheme (GMMR).

The country has long relied on desalination plants as a result of its lack of surface water and rainfall. For much of the past two decades, however, the government has concentrated its efforts in the water sector upon the $25 billion GMMR scheme and reduced the rate of construction of new desalination plants.

Today, as part of its plans to attract foreign investment, the government has...